VAT Return Bahrain Penalties Overview-Kind of VAT Administrative Penalties
- November 3, 2019
- Posted by:
- Category: Tax
VAT Return Bahrain penalties
Businesses who have registered for VAT in Bahrain are obliged to file their VAT Return on the specific period as prescribed by the National Bureau for Revenue (NBR) which is an online process.
The VAT Return Bahrain for businesses either be can be on a quarterly basis or on a half-yearly basis as of 2019 depending on their turnover. From the next year, 2020 NBR has prescribed that it will be a monthly basis or on a quarterly basis.
The below table will illustrate the applicability of the monthly and quarterly Vat Return Filing period in Bahrain.
| Annual Supplies | VAT Return Filing Period |
| Up to 3 Million BHD | On a quarterly basis |
| Above 3 Million BHD | On a monthly basis |
When will you file for your VAT Returns in the Kingdom of Bahrain from the year 2020?
The VAT Return period for those businesses who have registered for VAT will either have to file for VAT Return on a monthly basis or a quarterly basis. As you can see in the above table, businesses who has annual supplies upto 3 Million BHD shall file for VAT Return on a quarterly basis. For businesses whose annual supplies is over and above 3 Million BHD have to file for their VAT Return on a Monthly Basis.
Can businesses change their VAT Return Filing Period in the Kingdom of Bahrain?
The National Bureau for Taxation (NBR) should be requested if businesses with annual supplies upto 3 Million BHD would like to change their Quarterly Return Filing Period to Monthly Filing. In case the NBR accepts the request from any businesses, they will be notified with the request acceptance about the change in the VAT Return Filing Period.
What is Monthly VAT Return Filing?
As prescribed by the NBR, taxable businesses in Bahrain whose annual supplies exceeds above 3 Million BHD will have to file for their VAT Return on a monthly basis. Which means that you will have to file your VAT Return every month within the due date, i.e, last day of the subsequent month.
Example of Monthly VAT Return Filing: Your first tax period is January 2020, then your due date will be 29th February 2020.
What is Quarterly VAT Return in Bahrain?
As prescribed by the NBR, taxable businesses in Bahrain whose annual supplies is below 3 Million BHD will have to file for their VAT Return on a quarterly basis. This means that you will have to file your VAT Return on a quarterly basis within the due date, i.e, last day of the subsequent month.
Example of Quarterly VAT Return Filing: Your first tax period is January 2020 to March 2020, then your due date will be 30th April 2020.
| Quarterly VAT Return Fling Period from 2020 | Due Date |
| January – March | 30th April 2020 |
| April – June | 31st July 2020 |
| July –September | 31st October 2020 |
| October – December | 31st January 2021 |
Do you know about the VAT Return Penalties in Bahrain?
Once you have registered for VAT in Bahrain, it is necessary to comply with the Bahrain VAT Law. In case there is non- compliance, businesses will be levied with heavy administrative penalties. The administrative penalties are based on the different kinds or types of non-compliances made by the taxable businesses in the Kingdom of Bahrain.
Let us see a different kind of VAT Administrative Penalties or VAT Return Bahrain penalties that can be levied for non-compliances of Bahrain VAT Law.
| Types of Non – Compliance | Associated administrative fine |
| Failure to apply to register with the NBR (within 60 days from the date of expiry of the registration period) | Fine not exceeding BHD 10,000 |
| Late submission of the Tax Return (not exceeding 60 days) | Fine between 5% and 25% of the value of the Tax declared or paid |
| Late payment of the Tax due (not exceeding 60 days) | |
| Submission of false data on imports or supplies where their value is higher than the value declared in the tax return. | Fine between 2.5% and 5% of the unpaid Tax, per month (or part of month) where the Tax is not paid. |
| Preventing or obstructing the NBR’s staff or those mandated to implement the provisions of the Law and Regulations from carrying out their duties |
A fine not exceeding BHD 5,000 |
| Failure to notify the NBR of any changes to the information in the submitted VAT registration application or a tax return | |
| Failure to display prices of the goods or services inclusive of tax | |
| Failure to provide information requested by the NBR | |
| Failure to comply with the conditions and procedures of issuing a tax invoice | |
| Breaching of any other provision of the Law or the Regulations |
VAT Services in Bahrain
Emirates Chartered Accountants in Bahrain Branch provides everything you need to run a smooth flow of your business. Our wide range of professional services comes with a cost-effective and tailor-made option that is preferred by businesses all over. Our team of professionals is well versed with the Bahrain VAT Law as well as the UAE VAT Law. They are also equipped with practical experience of implementing VAT in UAE and VAT in Bahrain.
Our wide range of services includes:
- VAT Registration
- VAT Training
- VAT Implementation
- VAT Return Filing Service
- VAT Consultancy
- Accounting for VAT Compliance
We’d be happy to support you – Call us!
| For TAX Service in Bahrain
Mr. Bichin +973 3619 8998 |
For TAX Service in UAE
Mr. Navaneeth +971 55 889 2750 |
